PSO shows inability to import RFO for power generation

ISLAMABAD: The state-owned Pakistan State Oil (PSO) has conveyed to the Power Division that it will not immediately be able to import the residual furnace oil (RFO) for power generation rather it will be able to import the required product by the first week of June arguing that the entity needs 60 days to complete the import process under PPRA rules.

In a response to the letter from the Power Division, the PSO has shown its inability to immediately cater to the needs of furnace oil for power generation on account of hike in demand with the mercury going up, saying it has the storage of furnace oil, and if it provides to the power sector 8,000 tons a day, then it will be able to provide the product for 20 days only, as senior official of the Power Division told The News.

“However, the immediate requirement from the government stands at 12,000 tons per day.” PSO has, according to the official, suggested the government to ask refineries to provide the furnace oil directly to the PSO then it will be able to provide the 8,000 tons a day supply for 25 days to the furnace oil based power plants.

The state owned oil marketing company, the official said, has also suggested the government to ask the private sector oil marketing companies (OMCs) to import the furnace oil as they are not bound to obey PPRA laws.

In a high powered meeting, the official argued, recently held with Prime Minister in the chair, it was decided to make all available power plants operational as the government cannot afford any laxity in providing the power supply to the consumers at a time when the summer season has just set in Sindh, Balochistan and Punjab and the holy month of Ramazan is not far away knowing the fact that election campaigns from all political parties would also pick up the momentum in months of June and July.

“This is why the government has backtracked from its policy of banning the furnace oil for power generation. Since the demand has increased, so the government has allowed importing the furnace oil for running the furnace based power plants.”